Are retail silver supplies drying up?

Discussion in 'Silver' started by fishduck, Mar 18, 2020.

  1. toorak13

    toorak13 Member

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    kjc premium is CRAZY high\

    $20 over spot ?

    for silver?
     
  2. Alloy

    Alloy Member

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    No it's a terrible idea to buy right now. You'll lose a lot of money on the extraordinary premiums. These premiums are temporary, so I'd wait until the market returns to normal.
     
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  3. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    Depends what currency you are in.
     
  4. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    Is mining operations going to be on the back-burner?
    Is lending going to be on the back burner for explorers?
    Are you a flipper or holding for what's ahead.
    Having physical silver now, might be the ticket.
    If you think supply won't dry up, if you think the world will go back to normal in the next 6 months then..................

    Most folk who are preppers, want the metal, they have seen trillions of USD printed, history says there's repercussions when your currency is not backed by something physical.
    That physical silver that costs X USD now; what would happen if the USD falls out of favor?
     
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  5. Sam7

    Sam7 Member

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    There seem like there are shortages of silver all over the world. Very hard to get silver from bullion dealers in America. I already had some silver with Bullionstar in Singapore but now their premiums are getting crazy.

    I also heard all silver mines in Argentina, Peru and Chile have closed due to the Virus. That's approximately 25% of global supply.
     
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  6. Slimey

    Slimey Well-Known Member

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    I think the recent toilet paper shortage is a good representation of the recent market in silver.
    My brother works on the production line and what he told me helped clarify what I believe happens.
    Just like silver, toilet paper demand has been constant.
    Due to a perceived crisis, panic ensued and demand skyrocketed. Retailers were stripped of supply and a high premium was added to alternative supplies.
    Coles did not place an extra order in for toilet paper until the crisis had been in motion for a week or more...but why?
    I would guess that they know that all that has been stashed away will need to be used which in turn will cause a glut because they will have a contract for weekly deliveries and there will be a drop in demand proportional to the increase. In the end they will have to store all that extra paper which will come at a cost.
    There is no silver to be found with the dealers but that is not indicative of a shortage in silver. Like toilet paper, it is simply an unbalance in the total supply chain. A rebalance will occur and only after that can a real assessment be made as to actual demand. At 14 bucks an ounce, it is still a shit investment when you look over the last 10 years and the only ones getting wet in the knickers are those who watched it move to 19 bucks over the past 6 months and see this as a silver opportunity to pick up silver. Will they be so keen if there is a greater fall after this move back higher?
     
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  7. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    I only buy BS unless it's on sale or for specific coins that other dealers don't carry, such as gold QBs. Their recent spike was a clever move. The spike might have actually boost sales by the FOMO effect.
     
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  8. Aurora et luna

    Aurora et luna Well-Known Member Silver Stacker

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    A few of my customers are coming back after the shock plunge in the spot price.
    $800 for a kilo bar looks like the current price they are willing to pay as long as they can pick it up immediately.
     
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  9. slavaja

    slavaja Well-Known Member Silver Stacker

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    I called up bullionnow and they said the wait time could be up to 3 months for delivery for low premium 1kg bars $40 over spot. $60 over spot for 1kg bars if you want it now.
     
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  10. black5wan

    black5wan Active Member Silver Stacker

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    I would need atleast $850 if I have to sell today.
     
  11. slavaja

    slavaja Well-Known Member Silver Stacker

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    I would want $900 min
     
  12. kilo

    kilo Active Member Silver Stacker

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    But what would you pay?
     
  13. slavaja

    slavaja Well-Known Member Silver Stacker

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    I wouldn't pay it because I'm not desperate.
     
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  14. kilo

    kilo Active Member Silver Stacker

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    You would pay what you are happy to pay
     
  15. kilo

    kilo Active Member Silver Stacker

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    Didn’t say you were desperate,

    Just asked what you would pay in the current environment?
     
  16. slavaja

    slavaja Well-Known Member Silver Stacker

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    I would just get unallocated and pay the normal premium when stock comes back.
     
  17. Michael Stevens

    Michael Stevens Well-Known Member Silver Stacker

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    What happens when bullion dealers don't have enough physical to back up their allocated & unallocated programmes?
    Is it possible that they'd have to reject new orders?
     
  18. slavaja

    slavaja Well-Known Member Silver Stacker

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    I don't think they would sell any unallocated if they couldn't back it up. If they can't sell unallocated then we are definitely in the shitz
     
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  19. kilo

    kilo Active Member Silver Stacker

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    That makes sense and I agree with your premise however the discussion is really about physical buy price.
    If you want 1kg in your hand right now how much would you pay?
     
  20. slavaja

    slavaja Well-Known Member Silver Stacker

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    Probably what the shops are selling them for plus maybe $10 $20 bucks
     
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